Question

Sleep Tight, Inc. manufactures bedding sets. The budgeted production is for 49,700 comforters this year. Each comforter requires 1.5 hours to cut and sew the material. The cost of cutting and sewing labor is $19.70 per hour. Determine the direct labor budget for this year.

Answer 1

Total direct labor hours= 74,550

Total direct labor cost= $1,468,635

Step-by-step explanation:

Giving the following information:

Production= 49,700 units

Each comforter requires 1.5 hours to cut and sew the material.

The cost of cutting and sewing labor is $19.70 per hour.

We need to determine the direct labor budget:

Direct labor budget:

Total direct labor hours= 49,700*1.5= 74,550

Total direct labor cost= 74,550*19.7= $1,468,635